Write a more understandable answer, the following answer is purely hand-typed, I hope to support the praise!
CSCMP mentions the following points in its answer to the importance of supply chain:
First of all, let's explain the following who is CSCMP?
CSCMP, known as the Council of Supply Chain Management Professionals, was founded in 1963 and is headquartered in Chicago, USA, and is the world's most influential association of professionals. As a platform for global supply chain thought leaders, CSCMP is in a position to define the industry and lead the way. With the purpose of connecting and educating supply chain managers around the world, becoming a member of the association has become a sign of entering the professional field of supply chain management.In September 2002, CSCMP headquarters announced and approved the establishment of CSCMP China Roundtable at the global annual meeting in San Francisco, authorizing Dr. Wang Guowen as the chief representative of China, with the representative office set up in Beijing, China, which is the 79th Roundtable chapter in the world.
CSCMP China is committed to introducing the latest international supply chain research results, the latest development trends, industry experts and intellectual resources to China. Meanwhile, CSCMP China recommends Chinese excellent supply chain enterprises and cases to the world, promotes China's supply chain field and international communication and exchange, so that China's supply chain management can share the development experience with each other while enjoying the international advanced experience and theoretical research results more ****.
Importance of Supply Chain Management
It is well known that Supply Chain Management is an integral part of most companies, and it is essential to the success of the company and to enhance customer satisfaction.
Customer Experience
Customers expect to be able to get the products they want in a timely and accurate manner
Customers expect products to be available in a timely location (e.g., if an auto repair store doesn't have the parts they need in stock and can't fix your car) customer satisfaction is reduced?
Correct Delivery Time - Customers expect the product to be delivered on time (e.g. a customer booking a lunch online is two hours late or a birthday gift for a loved one is not delivered on the same day) then customer satisfaction decreases
Perfect After-Sales Service - Customers expect the product to be delivered with perfect after-sales service (e.g. in the heat of the summer the air conditioner in the house is faulty and the manufacturer doesn't provide timely repair service) then customer satisfaction will be reduced
Reducing operating costs
Reducing purchasing costs: retailers avoid paying high inventory costs by delivering products quickly (e.g., an electronics supplier needs to deliver a 60-inch flat-panel plasma HDTV quickly to avoid paying unnecessary inventory costs)
Lower production costs: Manufacturers rely on reliable partners in the supply chain to provide materials to assembly plants, avoiding shutdowns due to material shortages (e.g., a delay in the shipment of a component that causes a shutdown of an automated assembly plant could cost $20,000 per minute and more than a million dollars per day in lost wages)
Lower total supply chain costs: Suppliers and retailers rely on supply chain managers to know how to deliver products quickly, avoiding paying high inventory costs. retailers rely on supply chain managers to design a way to meet customer demand with the least amount of total cost of assembly. Efficient supply chain design makes companies more competitive in the marketplace. (For example, Dell's revolutionary computer supply chain solution involves building each computer to a specific customer order and then couriering the computer directly to the customer. As a result, Dell was able to save millions of dollars by avoiding stocking large inventories of computers in warehouses and retail stores, and, because of the rapid updating of electronics, Dell similarly solved the problem of stocking outdated products due to outdated technology)
Improving Financials
Increasing Profit Leverage: Currently Companies are focusing on supply chain management because of its ability to control and reduce supply chain costs, which greatly improves a company's profit margin. (For example, the U.S. consumers eat 2.7 billion packages of corn every year, if each package of corn can be reduced by one cent through the optimal design of supply chain processes, then it will save $13 million in costs)
Reducing Fixed Assets: Currently, companies pay attention to supply chain management because it can reduce the large fixed assets in the supply chain chain chain such as factories, warehouses, and transportation vehicles. Investment and use. If supply chain management professionals provide accurate services to customers by optimizing supply chain processes. then the company will reduce its investment in fixed assets.
Increased cash flow: Companies are now focusing on supply chain management because they speed up the flow of products to customers. (For example if a company can go from production of a product to delivery of the product to the customer in 10 days instead of 70 days, it can invoice the customer 60 days earlier. This increases the company's cash flow)
Supply chain management also plays a significant role in life. Supply chain management techniques can be utilized to support medical missions as well as to conduct disaster relief operations and deal with other types of emergencies.
Whether it's dealing with everyday products or responding to sudden natural disasters, supply chain management practitioners are constantly working on how to design a faster and more efficient supply chain network
Social Role of Supply Chain Management
Ensuring the Survival of Humanity
Supporting Human Life
Supply Chain Management helps to ensure the survival of human beings. p>Supply chain management contributes to human life: humans rely on supply chains for basic necessities such as food and water. Any failure in these networks can threaten human life. (For example, in 2005, when Hurricane Katrina flooded New Orleans, residents had no access to food and clean water. A massive rescue effort had to be implemented for the residents, and 1.9 million boxed lunches and 6.7 million liters of water arrived in time for the first day of the rescue effort)
Supply Chain Management improves human health: Human beings rely on the supply chain to deliver medicines and medical services. In a medical emergency, the performance of the supply chain can determine whether a patient lives or dies. (For example, a medevac helicopter can treat accident victims by quickly transporting them to a hospital. In addition, hospitals can provide medically necessary medicines and equipment through good supply chain management techniques)
Supply chain management protects against climate extremes: Humans rely on the energy supply chain to provide homes and businesses with electricity for lighting, heating, and air conditioning for cooling. A large-scale, prolonged power outage can be life-threatening to humans. (For example, during the massive East Coast ice storm in January 1998, 80,000 miles of power lines in Montreal, Quebec, failed, leaving nearly 3.2 million residents without electricity, resulting in 30 deaths and 25 per cent of residents moving away due to the extreme cold. (In addition, it caused $3 billion in losses to manufacturing companies, $1 billion in damage to homes, and $1 billion in government start-ups.)
Improving quality of life
Improving the rate of economic growth: A society with a highly developed supply chain infrastructure (modern interstates, a vast rail network, and ports and airports) can significantly reduce the cost of moving goods around and boost levels of consumption. This promotes economic growth. In fact one of the ****ing characteristics of a poor country is the absence or poor development of supply chain infrastructure.
Improving standards of living: A society with a highly developed supply chain infrastructure (modern interstates, extensive rail networks, and ports and airports) can significantly reduce the cost of goods movement. As a result, consumers can afford to buy more products with their incomes, thus raising the standard of living of the society. For example, it is estimated that supply chain costs account for 20% of product costs in the U.S., compared to 40% of product costs in China. If transportation losses are added, these costs constitute 60% of the cost of a product in China. China's high supply chain costs are a major obstacle to improving the standard of living for Chinese citizens. As a result, China has embarked on a huge effort to develop its infrastructure.
Job creation: Supply chain professionals design and operate all supply chains in society, managing transportation, warehousing, inventory management, packaging and logistics information. As a result, there are many jobs in the supply chain field. For example, in the U.S., logistics activities represented 9.9% of the money spent on goods and services in 2006. This translates into 10 million U.S. logistics jobs.
Opportunity to reduce pollution: Supply chain activities require packaging and transportation of products. As a byproduct of these activities, a number of harmful environmental pollutants are generated, such as cardboard waste and carbon dioxide fuel emissions. For example, paper and cardboard accounted for 34% of U.S. landfills in 2005. Of the 84 million tons of paper and cardboard waste, only 50% was recycled. In addition, transportation accounted for 33% of U.S. CO2 emissions in 2005. As network architects, supply chain professionals are in a key position to develop more sustainable processes and methods.
Opportunities to reduce energy use: Supply chain activities involve the transportation of people and products. As a by-product of these activities, scarce energy resources are depleted. For example, transportation currently accounts for 30% of the world's energy use and 95% of global oil consumption. As network designers, supply chain professionals play a role in developing energy-efficient supply chains that use fewer resources.
Protecting Cultural Freedom and Development
Defending Human Freedom:A nation's citizens rely on military logistics to safeguard their way of life from those who seek to end it. Military logistics strategically position aircraft, ships, tanks, missiles, and other weapons to provide maximum security for soldiers and other citizens. At the same time, superior logistics performance leads to military victories. For example, the B-2 stealth bomber is capable of delivering bombs to targets without enemy radar detection.
Protecting the delivery of essential goods: A nation's citizens rely on supply chain managers to design and operate food, pharmaceutical, and water supply chains to protect products from tampering. Advanced packaging technology, sophisticated surveillance cameras, global positioning systems, and RFID inventory tracking are some of the methods used to prevent terrorists from accessing these vital logistics systems.